This paper presents a mechanism inducing costly research and innovation in the absence of intellectual property rights. The mechanism relies on forward contracting between the provider of the innovation and firms or individuals that benefit from the pecuniary effects of the innovation, rather...

Since the mid-1980s, the federal government has supported collaborative R&D in private consortia and between industry and national research laboratories. One justification for these activities is that they can solve 'public goods' problems associated with producing non-appropriable,...